Kroger reports £468.94 million of net income in the fiscal third quarter

Written by: Wajeeh Khan
December 3, 2020
  • Kroger reports £468.94 million of net income in the fiscal third quarter.
  • The retailer's sales come in lower than expected in Q3.
  • Kroger values its share repurchase at £225.93 million in the third quarter.

The Kroger Co. (NYSE: KR) said on Thursday that its profit in the fiscal third quarter came in better than expected, but sales missed estimates.

At £24 per share, Kroger shares are currently a little under 15% up year to date in the stock market. Its shares tumbled to £19.96 in the last week of January. Kroger printed a year to date high of £27.20 per share in September but lost momentum in the past three months.

Kroger’s Q3 financial results versus analysts’ estimates

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Kroger said that its net income in the quarter that concluded on 7th November printed at £468.94 million that translates to 59.45 pence per share. In comparison, it had posted a much lower £195.46 million of net income in the same quarter last year or 23.78 pence per share.

Adjusted for one-time items, the retail company earned 52.77 pence per share in Q3 versus the year-ago figure of 34.93 pence per share. In terms of sales, Kroger reported a 6.3% annualised growth in the recent quarter to £22.09 billion.

According to FactSet, experts had forecast the company to record a higher £22.27 billion of sales in the third quarter. Their estimate for per-share earnings in Q3 was capped at a lower 49.79 pence per share. In the prior quarter (Q2), Kroger had noted an 8.24% growth in its revenue despite the ongoing COVID-19 crisis that has so far infected more than 14 million people in the U.S. and caused over a quarter million deaths.

Kroger also highlighted on Thursday that its same-store sales registered a 10.9% year over year growth versus a narrower 9.3% growth expected.

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Kroger’s guidance for the full financial year

Kroger valued its share repurchase at £225.93 million in the fiscal third quarter. For the full financial year, the Cincinnati-based company now forecasts its adjusted per-share earnings to fall in the range of £2.45 to £2.49. It expects its annual comparable-store sales to see a 14% growth.

In comparison, FactSet Consensus for Kroger’s adjusted per-share earnings stands at £2.45, and for annual same-store sales growth at 12.5%. Kroger expanded its partnership with the British online supermarket, Ocado, last week to include in-store fulfilment capabilities.

Kroger ended nearly flat on average in the stock market last year. At the time of writing, it is valued at £18.58 billion and has a price to earnings ratio of 9.87.